Z-Tech (India) Ltd Q4 FY26 Earnings Analysis

- The company expects significant growth in its water segment revenues in the coming year, projecting at least 2-3 times increase, though it will remain a small part of the overall portfolio (Page 17). - For the parks business, revenue for FY27 is expected around INR 170-200 crores, with EPC revenues growing from around INR 75-80 crores in FY26 to over INR 125 crores in FY27 (Pages 9-11). - Number of operational parks is expected to increase from 4 currently to 15 by end of FY26, and around 30 by end of FY27, supporting recurring revenue growth (Pages 9-14). - Recurring revenue from parks expected to grow from less than 5% currently to around 25% with 15 operational parks next year (Page 14). - Geotech (Terra) business showing significant growth, quadrupling last year’s quarter revenue, with plans to expand into flood mitigation and ground improvement projects (Page 9). - Overall, the company targets top-line and bottom-line growth of more than 50% year-on-year driven by expansion in parks and service segments (Page 14).

- The company expects a significant jump in top-line and bottom-line growth, targeting over 50% year-on-year growth driven by expanding park operations and ticketing revenues. - For FY '27, park business revenue is projected around INR 170-200 crores, with EPC revenue crossing INR 125 crores plus. - Recurring revenues from operational parks are expected to increase substantially, with a target of increasing from under 5% currently to around 25% as 15 parks become fully operational next year. - Margins in the water segment (wastewater and sewage recycling) are expected to improve as the segment grows from its current low base. - Geotechnical solutions margins remain steady around 15-20%. - EPS for the current fiscal is restated around 5.3 for the quarter and 11.6 for nine months, with no major dilution expected in the next 6-12 months. - The company is confident of strong Q4 growth with potential threefold increase from Q3 revenues based on seasonal demand.

- Z-Tech India is focusing on building and operationalizing at least 15 parks by the end of the current financial year, moving from 4 parks earlier in the year. - The company is investing capital to shift from purely EPC (Engineering, Procurement, and Construction) play to a consumer annuity model by operating these parks to generate recurring cash flows and profitability. - They funded and opened a park in Noida (Jungle Trail) through company funding, indicating direct capital deployment in park development. - No major acquisitions planned for the next six months; current focus is aligning the last acquisition related to water treatment technology. - Investments in technology acquisition for sewage treatment, recycling, and water body rejuvenation to complement park development and expand water treatment business. - Building technical strength in geotech for flood mitigation, mining stabilization, and soil erosion control, implying strategic investments in new areas of infrastructure solutions.

- There is no explicit mention of any planned new fundraising through equity or debt in the near future. - On equity dilution, Sunil Ghorawat mentioned no specifics about further dilution but indicated past warrants subscription leading to some dilution expected by September. - Vikas Jain confirmed some marginal dilution happened and might continue within the current year but no major equity raise is planned. - Sunil Ghorawat stated there is nothing concrete on acquisitions or fundraising slated in the next six months. - The company appears focused on integrating its recent acquisition rather than raising new funds immediately. - Overall, no clear plans for raising fresh equity or debt are indicated for the upcoming 6 to 12 months.

- Current total order book is expected to end close to INR 300 crores. - Creative parks pending order book is around INR 76 crores, with expected closure to INR 125-150 crores by year-end. - Recently received about INR 35 crores of new orders, including the largest-ever 35-acre Krishna-themed park in Mathura. - Total order book for wastewater management segment is around INR 15 crores (including roughly INR 1 crore O&M orders). - For FY '26, EPC revenue from parks expected around INR 75-80 crores, with ticketing/non-ticketing revenue projected at INR 8 crores. - FY '27 park EPC revenue expected to rise to INR 125+ crores, with 30 parks targeted operational by year-end. - No significant acquisition orders yet; focus remains on integrating last acquisition with no major acquisition planned for next six months.